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Friday, October 4, 2024 at 10:25 AM

Council approves 3% tax levy increase

Council approves 3% tax levy increase

At a special council meeting on Sept. 24 the Babbitt city council approved a three percent levy increase for property taxes for 2025.

The total 2025 budget was set at $2,808,270, up 10 percent from $2,552,165 in 2024.

The levy was set at $1,274,446, up three percent from $1,237,165 in 2024.

The budget items with larger increases included the police department going from $692,988 to $753,318. The street improvement fund went from $150,000 to $230,000.

There was considerable confusion at the meeting on different budget numbers on different sheets of paper.

Council member Jim Lassi questioned why there were two different totals for the 2025 budget. A sheet titled “Budget Work Papers” listed $2,808,270 and the resolution totaled $2,880,620.

“There’s a difference here of about $72,000,” said Lassi.

“On the Budget Work Papers, all of these funds aren’t on the resolution page,” said city clerk Robecca Jaeger.

“They’re all identical so why are the numbers different?” asked Lassi. “I tend to believe what’s on the resolution is the more accurate figure.”

That did not turn out to be the case. The resolution, which listed various appropriations, actually totaled $2,808,750, a difference of $71,870.

Jaeger said there must be a bug in the formula and that the two numbers should be the same.

After a considerable delay, the issue was resolved with the correct budget number determined to be $2,808,270.

Recreation director Caitlyn Stern said to the council the $72,000 could be used to help the recreation department.

“Are we going to help the rec out a little bit or are we gonna just leave it sit or what?” asked council member Paul Hoheisel.

Mayor Duane Lossing said there had been discussion of Stern applying for a grant. Stern said it would require a 50 percent match.

“Let’s see how much money you come out with on the grant and then we’ll know how much to give you,” said Lossing.

Stern said $50,000 would cover her original request for the skateboard park, kayak rentals and the playground equipment with or without the grant.

Lossing said the kayak rentals were discussed by the council but there wasn’t support for it.

Stern said she thinks the kayak rentals have a good chance of being funded by the IRRRB.

Council member Glenn Anderson said the discussion had been the grant would be matched but the budget would not be increased without the grant dollars. He also said there wasn’t enough information on the proposed kayak rentals.

Stern pushed for funding for skatepark and the playground. She said she has also applied for grants from the Lions Club.

Anderson said the only way to put in additional monies was to cut other budgets or raise the levy.

Stern questioned where the additional monies would come from if the grant was received.

“We already took money out of the general fund,” said Anderson.

Stern pressed for more monies and said she had provided information to the council already.

Anderson then demanded the motion be put to a vote “Call for a roll call please,” said Anderson.

The motion passed 3-1 with Anderson, Lassi and Hoheisel voting yes and Lossing voting no. Joe White was absent.


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